Global Prosperity

Theme Leaders:   Edward Shore, Elvira Sojli, Peter Pham and Kingsley Fong, in collaboration with the Asian Development Bank 

Among various definitions of "global prosperity, " one can observe a definition as follows: "True prosperity occurs when all people have the opportunity to thrive by fulfilling their unique potential and contributing to the strengthening of their communities and nations.” (Merriam-Webster.com).

Global Prosperity is one of the four main objectives of the Institute of Global Finance (IGF). The other three overarching goals—namely: “global systemic risks and interconnectedness,” “global financial stability and resilience,” and “global governance”—also support the process of national and global social and economic prosperity. For example, without a resilient global financial system and effective global governance that promotes multilateralism—including free trade and foreign investment flows—there are both direct and indirect effects on national and global social and economic prosperity. Simultaneously, the global financial crisis caused a notable decline in the social and economic prosperity of some nations, and many of the European Union’s green projects were put on the back burner, virtually, until the end of the global pandemic. Therefore, the IGF’s strategies and objectives are interconnected. 

As part of the globalisation process, the availability of financing—or the lack thereof—for initiatives related to environmental concerns—such as climate finance and the challenges of implementing ESG principles—and achieving the UN’s 17 SDG objectives by 2030 will directly and/or indirectly affect national, regional, and global financial stability as well as the process of social and economic prosperity. Addressing the challenges and opportunities related to climate change and climate finance (i.e., one of the factors that contribute to social and economic prosperity over time) is directly linked to how the objectives of the UN SDGs 2030 can be achieved. 

In developing nations, more than $2 trillion in investments annually is estimated to be needed to address climate change, but current investments are around $500 billion. Simultaneously, green bonds are emerging as vital tools for mobilising private capital towards public and corporate projects. There is a need for policy research and frameworks to tackle issues related to green bonds, such as the lack of standardisation and the absence of a robust regional or global framework to verify the credibility of projects seeking to use green bonds.

The IGF has published several impactful research works and organised numerous international policy forums in collaboration with the Asian Development Bank that address the issues mentioned earlier, including climate change and climate finance. In September 2023, prior to COP28, the IGF jointly published a book with the Asian Development Bank titled "Climate Change and Climate Finance: Current Experience and Future Directions." The IGF, in partnership with the World Bank, has jointly published a significant work on the impact of COVID-19 on financial stability and the financial system, as well as the factors that enhance greater financial resilience against future global challenges like pandemics.

At the same time, certain core forces play a vital role in fostering this prosperity. One such core element is the role of Science and Technology, which has proven its ability to transform the lives of billions by improving living standards, economic growth, and employment opportunities. Another crucial aspect is the contribution of entrepreneurs, investment, and the leadership of the global business community in leveraging the advantages of technological advancements and creative destruction to ensure greater levels of employment, productivity, and access to consumer products, as organic economic growth should benefit individuals and communities. 

The IGF aims to continue its ongoing collaborative efforts with the ADB and its partners in the business community on issues related to the process of social and economic prosperity for Australia and the world.

The IGF aims to expand its collaborative efforts, including hosting policy forums with partners from the business sector, such as BlackRock, ASX, KPMG, PwC, and Fund Management Challenger, as well as the Reserve Bank of Australia, to promote initiatives that can accelerate the process of social and economic prosperity for Australia.

The IGF, in collaboration with the ADB, continues its research on issues related to climate finance, sustainable investment, and their interconnectedness with some of the objectives of the UN SDGs by 2030. 

The IGF will continue research and publications with the ADB and will hold a joint conference with the ADB on factors that could enhance the process of financial inclusion and prosperity for the Asia-Pacific region. 

The IGF is currently preparing a book on climate change and climate finance, with contributions from major central banks and top researchers, as part of its efforts related to the agenda and directions of the IPCC Reports and the associated COPs meetings.